Telangana Boycott Plummets TV9′s Valuation

Two months after the controversy over it’s derogatory comments against Telangana legislature, CM and dialect, TV9′s promoters got into the act and sent a letter to MSOs directly offering their ‘sincere apologies’ over the matter. The letter marks a big turnaround in TV9′s attitude in the matter.

All these days TV9 has been trying every trick to get back into air in Telangana by coercing the MSOs into withdrawing their boycott. BJP and TDP backed it strongly and they went to Governor a dozen times, between them, over the issue giving representations for ‘freedom of press’. TV9 went to court to rein the MSOs in and it failed. The issue went right into Parliament and Telangana MPs defended the boycott vociferously and even circulated their TV9′s infamous Bullet News episode among the MPs! Broadcasting minister Prakash Javedkar pitched in and asked the MSOs to restart telecast of TV9 and ABN in Telangana. The MSOs rejected the order and questioned his Locus Standi in the matter. And recently TV9 CEO Ravi Prakash has been arrested and released on bail.

Meanwhile TV9 sent notices to Facebook, Twitter and Telangana Talkies too, to remove the Bullet News episode from hosting as it is copyrighted by TV9. In effect, TV9 did everything to remove the memories of the program from public mind and force MSOs to backtrack. But there was one thing it was not seen doing. And that was offering a sincere apology.

That seem to have costed TV9 dearly, where it matters. It’s TRPs plummeted and with them it’s high valuation. Associated Broadcasting Company Private Limited (ABC), which promotes TV9 channels in different languages, was earlier preparing an exit to its original promoting group, Peepul Capital, headed by serial entrepreneur Srini Raju (who holds about 65 per cent), before this crisis struck. There was speculation that ABC has received interest from the promoters of NewsX and Film producer Prasad V Potluri and Peeplu was about to sell it’s stake. Apparently, Associated Broadcasting Company was valued around Rs 400 crore then. After the boycott episode and the hostility TV9 raked up in Telangana, those figures reportedly took a hit.

So ABC now reached out to the MSOs to enter into an agreement even while offering unconditional apologies.